Triangle to go Public

Shandong Triangle Tire Co. Ltd is to hold an initial public share offering, marking the final step in its move away from Chinese government (specifically the government of Weihai, Shandong province) ownership. This could potentially result in new funds to hire staff and build the Triangle brand. However, it also means ending its state-owned ties with Weihai town hall, and therefore the benefits that came with that.

Triangle holds roughly 1 per cent global market share, but it also has five serious domestic competitors, 20 medium-sized rivals and another 300 or so small ones. Despite this, Triangle’s passenger car tyre sales are said to be growing by more than 20 per cent a year, compared with a global market average of 6 per cent annually. In addition, Triangle’s construction, farming and mining vehicle division is reportedly doubling production this year.

This year Triangle is expected to output 14 million units, with this figure rising to 17 million units in 2009. Triangle tyres are DOT- and E-marked and carry the CCC Chinese approval mark and the local Chinese market. It is also certified according to ISO-9001 and ISO-14001 as well as QS9000. According to the company, Triangle sells tyres to more than 100 countries.

32 years after the company was founded as Weihai Factory, the company’s current legal name is Shandong Triangle Tire Co. Ltd (it was renamed Shandong Tire Factory in between).